China’s coal import is one of the main pillars of dry bulk recovery

China’s coal import is one of the main pillars of dry bulk recovery

China’s coal imports One of the main pillars of dry bulk recovery, according to the Mana International Group, following the restrictive and cumbersome policies of the Chinese government, coal imports to this country are expected to slow down, an event that The shutdown of the dry bulk shipping industry will overshadow it.

The report continued: “While many major and minor ports in China are facing long-term customs clearance, the government has banned the import of coal to 12 sub-ports in South China for the second six months of the year. Official data show that in addition to closing ports, Beijing has shut down most of its inefficient domestic mines with a production capacity of 111 million tonnes.

“The policies adopted have not yet had a significant impact on coal imports, but traders have expressed concern about these restrictive and cumbersome policies,” he said. These policies will eventually lead to a slowdown in coal imports to China, an event that undermines one of the key elements in improving the bulk dry market.

According to the latest port and floating routing data, China’s coal imports grew by more than 14% to 20.1 million tonnes in July this year, however, this upward trend can not be He estimated that summer has always been a peak season for Chinese coal imports.

In addition, coal carriers have flocked to major ports such as Xiamen and Guangzhou following restrictions on coal entry to 12 of China’s ports. Fujian and Guangdong are home to two-thirds of China’s ports. اند.

On the other hand, data from Yimei, the online coal trading platform, show that coal logs in the port of Guangzhou, the most important port in China’s Guangzhou province, increased from 1.5 million tons on June 30 this year to two. Million tons increased in the 12 months of July.

The real problem

On the surface, shipowners may well benefit from China’s strong demand for coal and accumulation in some ports that limit floating supply, but the truth is far less promising. In other words, in this case, the prolongation of the customs clearance process in many coal ports is a factor that will significantly curb the appetite of traders.

Along with the ban on coal imports to sub-ports, Beijing has increased processing time, which used to take seven to ten days, but now it will take between two weeks and two months to different ports. Ended.

A delay in evacuation, coupled with the drop in the peak season, has slowed down the activities of many traders, in other words, they have been waiting to see what happens and then react, said a Singapore-based businessman. He further emphasized: the future ahead is very vague and uncertain.

“If Beijing continues to control imports, and fix fixed pricing for domestic coal and reduce its mining production capacity, domestic companies could face a shortage of coal,” the report concluded.